Aircraft Loan Calculator

Step-by-Step Guide to Using the Aircraft Loan Calculator

Introduction

The Aircraft Loan Calculator is a useful tool for determining the financial aspects of purchasing an aircraft. It calculates the loan amount, monthly payments, total interest, total cost, down payment percentage, and loan-to-value ratio based on user-provided inputs. Follow the guide below to effectively use the calculator and understand your financial commitments.

Step 1: Input Required Fields

• Aircraft Price ($): Enter the total price of the aircraft. This value should be between $10,000 and $100,000,000 as per the validation requirements.
• Down Payment ($): Input the amount you wish to pay upfront for the aircraft. The down payment must be at least $0.
• Loan Term: Choose the desired loan term from the dropdown menu. Options available include 5 years (60 months), 10 years (120 months), 15 years (180 months), and 20 years (240 months).
• Annual Interest Rate (%): Enter the annual interest rate applicable to your loan. The interest rate should be between 0.01% and 30% and can be adjusted in increments of 0.01%.
• Aircraft Age (Years): Specify the age of the aircraft in years. This should be a value between 0 and 50 years.

Step 2: Review the Calculations

• Total Loan Amount: This is calculated as the difference between the aircraft price and the down payment. It shows how much of the purchase is being financed.
• Monthly Payment: This is an estimate of your monthly payment based on the total loan amount, interest rate, and loan term. The calculation follows a standard amortization formula.
• Total Interest: This represents the total interest cost over the life of the loan, calculated as the difference between the total payments made and the loan amount.
• Total Cost: Determined by multiplying the monthly payment by the loan term, this reflects the overall cost of the purchase, including principal and interest.
• Down Payment Percentage: This calculation shows the percentage of the aircraft price that is covered by your down payment.
• Loan to Value Ratio: This ratio is crucial for lenders and reflects the percentage of the aircraft’s value that is being financed through the loan.

Step 3: Analyze Results

Review the results to understand your financial obligations better. The loan amount, monthly payments, and total interest give you an insight into how much financing you require and the cost of borrowing. The down payment percentage and loan-to-value ratio help evaluate the loan’s riskiness and your equity in the aircraft.

Using this calculator allows for effective financial planning and aids in decision-making when considering the purchase of an aircraft through a loan.